Navika Group of Companies, a Uniondale-based private real estate investment group, is set to buy the 305-room Hilton Long Island/Huntington in Melville for $53 million.
Navika Group is scheduled to close on the sale next week, and plans to spend roughly $7 million more to renovate and update the hotel, said Naveen Shah, president and chief executive of the company.
The property was bought for $32.4 million in 2011 by a joint venture between Seattle-based Dow Hotel Co., the property manager, and PGIM Real Estate, formerly Prudential Real Estate Investors.
Officials with Dow Hotel and Prudential declined to comment on the sale.
“We plan to do improvements, so the total cost of the project will be around $60 million,” Shah said. “We will be starting with the exterior of the property to increase the curb appeal.”
In 2012, the hotel underwent a $16 million renovation, including upgrades to guest rooms, public spaces and the lobby, and the addition of a steakhouse.
Renovating every few years is a must when keeping up with competitors, said Mike Johnston, current board member and former president of the Long Island Hospitality and Leisure Association
“If you want to keep up with the Joneses, you have to stay current,” said Johnston, adding that the Hilton is in a good but competitive market. With “a busy hotel, think about the abuse it takes. You need to stay on top of it.”
Navika Group, which focuses primarily on owning and operating hospitality assets, owns 78 properties in the United States, 53 of which are hotels, Shah said. While the company has a presence in 23 states, the deal represents its first hotel acquisition on the Island.
The real estate firm was founded in 2005. Shah said the private company’s goal is to eventually become a publicly traded real estate investment trust, and it wants to buy additional hotels on Long Island.